Tech Mahindra may also lay-off hundreds of employees. Here’s why

Indian IT firm Tech Mahindra may ask hundreds of its non-performing employees to leave. Tech Mahindra will terminate its bottom performers in the appraisal cycle.

Tech Mahindra, which did not confirm how many employees it is going to terminate, has begun its annual performance appraisal process.

"We have a process of weeding out bottom performers every year and this year is no different," Tech Mahindra told PTI.

As per reports, the number would run into hundreds. At the end of December 2016, the company had over 1.17 lakh employees.

Tech Mahindra will join Wipro, Infosys and Cognizant, who are apparently terminating their employees based on performance and hiring in the US.

The Indian IT sector is already facing multiple challenges, especially due to H1-B visa norms.

While the companies have termed these layoffs as part of normal business decisions, many believe these are directed more towards controlling costs.

Last week, the US-based Cognizant had rolled out a voluntary separation programme for directors, associate VPs and senior VPs, offering them 6-9 months of salary.

Wipro, too, is learnt to have asked about 600 employees to leave as part of its annual "performance appraisal" even as speculations were that the number could go as high as 2,000.